AC 1 FINAL EXAMINATION Marichu Fornolles Guardians completed the following major transactions during 2019. October 21 Fornolles transferred cash from a personal account to an account to be used for the business, P243,000. October 29 Fornolles invested in the business personal weapons having a fair market value of P54,000 and can be used for 5 years. In addition, she also invested some furniture with market value of P30,000 and can still last for 3 more years. October 30 Bought communication equipment on account from Pesa Electronics, P53, 740 with life years of 5 years. November 3 Paid 3-month advance rent from the month of November, for P10, 000 each. November 16 Received invoice and paid insurance premium to Cacawa Fidelity company for bonding employees for 1 year, P18,000. November 22 Performed security services for Loreta Galleries. Billed Loreta for services rendered, P50, 000. November 24 Performed security services at a fashion jewelry fair. Billed and received cash from organizers for services rendered, P17,500. November 27 Paid Pesa Electranics P14,500 to apply on account. November 30 Paid salaries of employees for the month of November, P35,000 December 2 Received P50, 000 from Loreta Galleries for the services billed in Nov. 22. December 16 Received bill from Marcos Printers for office stationery to be used for various months, P6,000. December 17 Billed Pascua Construction for services rendered, P20,000. December 20 Paid Marcos Printers for the whole bill received. December 22 Billed Loreta Galleries for the services rendered for the past month, P50,000 December 29 Received variaus bills for telephone, electricity and water for a total of P5, 030. December 30 Paid salaries of employees for the month of December, P50,000. December 31 Fornolles withdrew cash for personal use, P18,000. REQUIREMENTS: 1. Create and set up a Chart of Accounts and T-accounts with the following account names and with 3-digit account number starting from 100 for Current Assets, 200 for Non-current Assets, 300 for Current Liabilities, 400 for Non-current Liabilities, 500 for Equity, 600 for Income, and 700 for Expense Accounts: Cash: Accounts Receivable; office Supplies; Prepaid Insurance; Prepaid Rent; Arms and Cemmunications Equipment; Accumulated Depreciation - Arms and Communications Equipment; Furniture and Fixture; Accumulated Depreciation - Furniture and Fixture; Accounts Payable; Fornolles, Capital; Fornolles, Withdrawals; Service Revenue; Salaries Expense: Rent Expense; Supplies Expense: Utilities Expense: Insurance Expense: and Depreciation Expense. 2. Journalize the given transactions. 3. Post the entries to T-accounts. 5. Create and post adjusting entries in relation to the Prepaid Insurance, Prepaid Rent, office Supplies and Depreciation. The business has used up office stationery worth Pl,500 at the end of the year. 6. Continue or extend the Triial Balance to add the adjustments and come up with Adjusted Trial Balance. 7. Prepare the following by the end of 2019: a. Statement of Profit or Loss b. Statement of Changes in Owner's Equity c. Statement of Financial Position